Not so rosy outlook for banking sector

PETALING JAYA: Although the banking sector loan growth inched up in May despite the implementation of the goods and services tax (GST) on April 1, analysts on the whole are not bullish of the attractiveness of the sector.

While some of them are maintaining their loan growth projections at between 7.5% and 8% this year after revising them downwards, they told StarBiz that the outlook for this year would not be rosy as some of the glaring challenges would continue to rear its ugly head on the industry.